Coinbase CEO Brian Armstrong revealed the exchange probes an AI glitch that fired off eerie breaking news alerts claiming Norway snatched a 3-2 victory over Brazil in the FIFA World Cup well before kickoff.
The alert even credited Manchester City forward Erling Haaland with a brace that propelled the Vikings forward.
Yet the prediction platform page noted weather delays while Norway later prevailed with a fresh scoreline and Haaland netting twice anyway.
AI Glitch Sparks Alarm In Prediction Markets 🕷️
Relay Digital managing partner Jay Drain Jr first flagged the chaos by sharing a post on X noting how the Coinbase AI was hallucinating results for a World Cup game that has not even been played yet.
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Some time later Coinbase chief Brian Armstrong replied insisting a full review had launched.
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The firm head of consumer and business products Max Branzburg then confirmed the incorrect story got fixed with added safeguards ahead.
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It is awesome to see the power of AI-enabled 24/7 insights for trading but obviously still need to tune it to address these types of issues.
And hey it turns out Norway did win and Haaland did score 2 goals so maybe the AI knew something we did not.
Trader Bleeds Millions On World Cup Wagers 🦇
World Cup fever pushed trading volumes on leading prediction markets from around $65 million in early June to a high of $5.6 billion toward the end of that month.
One Polymarket user highlighted on June 6 by blockchain analytics platform Lookonchain reportedly lost $11.63 million during a 10-day betting spree on World Cup markets.
According to Polymarket records Coldsway placed bets on 15 soccer markets and traded a total of $48.19 million.
They counted wins on only 4 positions while 11 closed at a complete loss putting their win rate at 26.7 percent.
The trader biggest winning position generated $1.12 million after placing a $689318 bet that Australia and Egypt would finish in a draw.
They also made $962940 from a $1.48 million position predicting Egypt would not win the July 3 fixture.
However several unsuccessful million-dollar wagers outweighed all profits Coldsway made with the largest single loss reaching $4.95 million as a result of Morocco 3-0 win against Canada on July 4.
They also lost $3.10 million on a prediction that Canada would not beat South Africa on June 28.
Just another echo from the void by iconofsin.eth 💖
